Adrian Day Says Gold Poised To Hit $1,600 By Sept. As Shorts Scramble To Cover
HardAssetsInvestor: What’s your view on the decline in gold over the past year, and your outlook going forward?
Adrian Day: To some extent, gold was a little bit ahead of itself. If you look at the long-term chart of gold, you see that it actually moved above its trend line for really pretty much the first time in September 2011.
And it was largely because of the expectation that the European Central Bank was going to do more than it actually wound up doing in terms of monetary stimulus at that time. And what’s happened particularly over the last year is you’ve had everybody look at gold through what I like to call “a bearish prism.” In other words, if something is positive for gold, it’s ignored; if something’s negative, people pounce on it and the market goes down.